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Restrictions on cadmium telluride exports are expected to increase costs for US thin-film solar manufacturer First Solar. Chinas Ministry of Commerce and General Administration of Customs jointly announced on February 4 that the country will impose export controls on tungsten, tellurium, bismuth, molybdenum and indium. The decision, approved by the State Council, is intended to safeguard national security, protect strategic resources and comply with international non-proliferation obligations, according to the official statement. From now on, exporters of these materials must obtain special authorization from the ministry, in accordance with the Export Control Law and the Foreign Trade Law of China. The measures take effect immediately. The new restrictions specifically affect tellurium and its compounds, including cadmium telluride (CdTe), cadmium zinc telluride (CdZnTe) and cadmium mercury telluride (CdHgTe). The controls cover both the refined metal and its chemical derivatives, as well as the technologies and production data related to its manufacture. The move is expected to have major ramifications for the global solar industry, given that cadmium telluride is a key material used in thin-film solar cells. China dominates tellurium refining and CdTe production, so export restrictions could reduce global supply and increase prices. US company First Solar, the world leader in the production of CdTe thin-film photovoltaic modules, could be particularly affected. According to a research report released by Dongguan Securities on February 5, China will produce 750 metric tons of refined tellurium in 2024, accounting for about 76.53% of the global output. In 2023, China will export about 1,200 tons of CdTe materials, a substantial share of the global CdTe consumption. Based on China’s CdTe export figures in 2023, shipments were sufficient to support approximately 12 GW of CdTe-based thin-film solar production. |
